The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials Indirect labor Property taxes, factory Utilities, factory Depreciation, factory. Insurance, factory Total actual manufacturing overhead costs incurred Other costs incurred: Purchases of raw materials (both direct and indirect) Direct labor cost Inventories: Raw materials, beginning Raw materials, ending i Work in process, beginning Work in process, ending $ 16,300 143,000 9,300 83,000 Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year. 149,100 11,300 $ 412,000 $413,000 $ 73,000 $ 21,300 $ 31,300 $ 41,300 $71,300 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,000 machine-hours were used during the year.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Hh1.
Account
![Required 1 Required 2
Compute the amount of underapplied or overapplied overhead cost for the year.
overhead cost
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Required 1 Required 2
Direct materials
Total raw materials available
Raw materials used in production
< Required 1
Prepare a schedule of cost of goods manufactured for the year.
Direct materials used in production
Cost of goods manufactured
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Total manufacturing costs added to production
Total manufacturing costs to account for
Chang Company
Schedule of Cost of Goods Manufactured
Required 2 >
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![The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
Manufacturing overhead costs incurred:
Indirect materials
Indirect labor
Property taxes, factory
Utilities, factory
Depreciation, factory.
Insurance, factory
Total actual manufacturing overhead costs incurred
Other costs incurred:
Purchases of raw materials (both direct and indirect)
Direct labor cost
Inventories:
Raw materials, beginning
Raw materials, ending i
Work in process, beginning
Work in process, ending
$ 16,300
143,000
9,300
83,000
Required:
1. Compute the amount of underapplied or overapplied overhead cost for the year.
2. Prepare a schedule of cost of goods manufactured for the year.
149,100
11,300
$ 412,000
$413,000
$ 73,000
$ 21,300
$ 31,300
$ 41,300
$71,300
The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 21,000
machine-hours were used during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F614d5e2e-8a04-4ef9-a31d-d2f8fb345e7f%2F9f46915a-d839-489b-a693-cd6551737763%2F1or7amg_processed.jpeg&w=3840&q=75)
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